My boyfriend and I are buying a home together. He will be borrower and I will be co-borrower. He has a federal tax lien. Will it attach itself to the mortgage? How will it effect my rights?
First of all I would be concerned if the lender will give you a mortgage if one of you has a Federal Tax Lien. It may be a requirement of the loan process that the lien be cleared. If that is not the case, hungry lenders surprise me all of the time, you could have the property attached if there is equity enough for the IRS to collect what they are owed. Depending on the size of the tax lien you could be getting into something that would be very costly.
Can my boyfriends tax lein attach to my portion of the equity in a mortgage?
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see a lawyer NOW. protect yourself.
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A tax lien will be against the property in the situation you describe and therefore could negatively impact your portion of the equity. You can protect yourself with a separate contract with your boyfriend, but it must be filed with a law firm for your protection. Even with a separate contract, it will not protect you if your boyfriend defaults on the mortgage and the house is foreclosed. Your credit is also at risk being a co-borrower on the mortgage.
Buyer beware
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OC Register Real Estate columns, previous experience.
First of all I would be concerned if the lender will give you a mortgage if one of you has a Federal Tax Lien. It may be a requirement of the loan process that the lien be cleared. If that is not the case, hungry lenders surprise me all of the time, you could have the property attached if there is equity enough for the IRS to collect what they are owed. Depending on the size of the tax lien you could be getting into something that would be very costly.
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see attorney
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